Leading the Way Through the Forest

By Lisa M. StarrWynne Business

Copyright © 2002 East Coast Spa Services.

Where Do You Spend Most of Your Time and Energy?

Financial managementOperations managementHuman resourcesLeadership and communicationVendor relationsAdvertising and marketingAs a technician (serving clients)

What Is Leadership?

The process of mobilizing people, their ideas, and their energy.

Leadership vs. ManagementManagement is getting people to do what needs to be doneLeadership is getting people to want to do what needs to be doneManagers push. Leaders pull. Managers command. Leaders communicate.Management: creating an environment for performanceLeadership: creating an environment for fulfillment and growth

Changing Business Environment

In 4 years, Facebook has grown from 0 to 70 million active usersLast year, 17,000 new grocery products were introduced; the average store carries 30,000 itemsToday, the average person makes 5 career changes during their worklife

Change in the spa worldIn US, one out of three beauty professionals changed jobs last year, a national turnover rate of 33%25% of all positions were filled with inexperienced workersMeanwhile, customer expectations continue to escalateHow can we deliver customer service in this environment?

Challenges Affecting theSpa Industry Today

Outmoded Compensation PlansGlobal Labor ShortagesLack of industry-wide standards for

defining spa categories and best practicesBurgeoning competition, market

saturation in some marketsSustainability

Resort Spa Challenges

Connecting with clientsGiving the spa a personality within the larger brandCorporate HR understanding of spa cultureHigh expectations of clients

What is Change Management?

The discipline of planning, organizing, and controlling organizational change to:

More effectively solve current business problemsAnticipate future business problems or opportunities

Changes in Your Business

QUESTIONS:What changes are you trying to implement or deal with in your business?What are the greatest challenges or obstacles in implementing the change?What are you relying on (enablers) to ensure the change happens?

Barriers to ChangeArrogance about our success

“If it ain’t broke, don’t fix it”

Denial that we are in troubleBoiled frog syndrome

Risk aversion, learned apathy“We tried that before and it didn’t work”“That’ll never fly around here”

Owner vs. employee accountability

Barriers to Change cont’d

Entrenched industry practicesEmployee resistance to change

Passive resistance (“wait and see”)Active resistance

Lack of follow-throughCreates “snap-back”Makes employees skeptical about the next change

Lack of leadership than can inspire followership

Staff reactions to change

DisengagementDisidentification

DisorientationDisenchantment

“Quit and stay”“I used to be

somebody”“Where do I fit in?”“Ain’t it awful”

How Employees React to Change

InactiveInactive

ProactiveProactive

ReactiveReactive

Choice

CommitmentEnrollmentWillful compliance

Grudging complianceDysfunctionalSabotage

FollowershipHeads downAvoidance

Source: The Inventure Group

Change Is Both Natural and Inevitable

FORMINGExplore and invent

the pattern

NORMINGExtend and improve

the pattern

FULFILLINGIntegrate the new and

different

EfficiencyStandardizationPolicies & proceduresReplication, sameness

Innovation, re-inventionShared leadershipCollaborationRisk takingPartnering

EntrepreneurialCreativeExploratoryTrial-and-error

Source: “Grow or Die,” George T. Ainsworth-Land

Why Do We Resist Change?

Act like victim Act like owner

Focused on loss, threat Focused on gain, opportunity

ControlAutonomyPowerInfluencePositionStatus

MoneyWork environmentEntitlementFuture or careerFriends, colleagues

What Can You Do? Enablers of Change

Provide strong leadershipSeek the highest level of employee involvementBuild coalitions, find champions and “change agents”Practice empathy; acknowledge employee feelings of lossChallenge traditional assumptions: your own and your employees’!

What Can You Do? Enablers of Change cont’d

Set realistic goals and timetablesFollow through until the change is completeLook for near-terms wins that build momentum and success experience

3 Keys to Managing Change

Demonstrate EmpathyUnderstand that reactions are not logicalSuspend judgment, goal is to understand

Facilitate CommunicationCommunication is not sending memosCreate understanding

Encourage ParticipationGives staff opportunity for input and control

Empathy

Developing empathetic relationships helps to:

Anticipate and plan for resistanceProvides support tool in times of instabilityAllows you to plan degree of participationBuilds loyalty and commitment

Communication

Poor communication Destroys commitmentDamages moraleGenerates resistanceDevelops performance problems

Communication guidelinesWhom – everyone who wants to knowWhat – anything that’s not confidentialWhen – early and oftenHow – multiple modalities

Communication BehaviorsSIX BEHAVIORS THAT PREVENT COMMUNICATION

Judging

Superiority

Certainty

Controlling

Manipulating

Indifference

SIX BEHAVIORS THAT ENCOURAGE COMMUNICATION

Description

Equality

Openness

Empathy

Problem-orientation

Positive Intent

ParticipationAsk for inputSeriously evaluate contributionsUse those that are validDon’t use those that aren’t practical,

but make sure that contributors understand whyGive credit to those whose ideas were

used

Survey of Fortune 500 Companies

Top 10 Barriers Top 10 Enablers

Competing resources 48%Functional boundaries 44%Change skills 43%Middle management 38%Long IT lead times 35%Communication 35%Employee opposition 33%HR (people/training) issues 33%Initiative fatigue 32%Unrealistic timetables 31%

% of 500 companies % of 500 companies

Ensuring top sponsorship 82%Treating people fairly 82%Involving employees 75%Giving quality communications

70%Providing sufficient training 68%Using clear performance measures 65%Building teams after change 62%Focusing on culture/skill changes 62%Rewarding success 60%Using internal champions 60%Source: PricewaterhouseCoopers LLP

Another Viewpoint: Why Change Efforts Fail1. Not establishing a

great enough sense of urgency

2. Not creating a powerful enough guiding coalition

3. Lacking a vision4. Undercommunicating

the vision by a factor of ten

5. Not removing obstacles to the vision

6. Not systematically planning for and creating short-term wins

7. Not anchoring changes in the company’s culture

8. Declaring victory too soon

Source: “Why Transformation Efforts Fail,” John P. Kotter

Understanding and adapting to different behavioral different styles

Social Style Summary Chart

AnalyticalLow Assertive

Low Responsive

DriverHigh Assertive

Low Responsive

AmiableLow Assertive

High Responsive

ExpressiveHigh Assertive-

High Responsive

Control

Ask Tell

Emote

The Group Journey

Performance LevelShare Responsibility

Recognizing Common Purpose

Lacking Common Purpose

High

Good

Medium

LowCollection of Individuals

Group Team High Performance Team

Quality of Group Interaction

Action PlanUse team approach, involve everyoneMake plans, looselyBe aware of timingProvide training and supportUnderstand and work with resistanceExpect “implementation dip”Change takes time

Leading the Way Through the Forest

THANK YOU FOR YOUR ATTENTION!

A copy of this presentation will be posted on www.wynnebusiness.com

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lstarr@wynnebusiness.com